STABLECOINS

[Daiana]

USDT, USDC, and DAI have their own pages here on altcoin. So which stablecoin do you have?

Here are some pros and cons - are there more?

$DAI

Pros:
- Decentralization: Managed by MakerDAO, ensuring no central authority controls the coin.
- Collateral Backing: Backed by a variety of cryptocurrencies, enhancing stability and reliability.
- Dai Savings Rate (DSR): Users can earn interest by locking their DAI in the DSR contract.

Cons:
Complexity: Mechanisms involving collateralized debt positions (CDPs) and smart contracts can be complex for new users.
Volatility Risk of Collateral: Backed by volatile cryptocurrencies, which can affect DAI’s stability during extreme market fluctuations.
Governance Risk: Relies on the decisions of MKR token holders, which can impact stability and usability.

$USDT (Tether)

Pros:
Market Dominance: High liquidity and acceptance across numerous exchanges and platforms.
Stability: Pegged to the US dollar, providing price stability.
Ease of Use: Facilitates quick and low-cost transactions between exchanges and wallets.

Cons:
Centralization: Issued and controlled by Tether Limited, raising concerns about transparency.
Regulatory Scrutiny: Faces regulatory scrutiny and legal challenges, creating uncertainty.
Audit Concerns: Ongoing concerns about the lack of comprehensive audits to verify reserve claims.

$USDC

Pros:
Transparency: Issued by regulated financial institutions with regular attestations of reserves.
Stability: Fully backed by the US dollar and audited monthly.
Regulatory Compliance: Operates under strict regulatory standards, enhancing trust among users.

Cons:
Centralization: Issued by a consortium (Centre) and controlled by regulated entities, leading to centralization concerns.
Regulatory Risk: Subject to regulatory changes that could impact its operations.
Limited Use Cases: Primarily used for trading and transfers, with fewer DeFi applications compared to DAI.

[Stompix]

$DAI
Pros:
- Decentralization: Managed by MakerDAO, ensuring no central authority controls the coin.
Cons:
Governance Risk: Relies on the decisions of MKR token holders, which can impact stability and usability.

How can you have a coin count in both pro and cons based on the ones making the decision?
Is it centralized or decentralized in the end, is there an authority or not behind it?

But I'll answer this myself, since the so-called decentralized organization actually hold US bonds, 1.2Billion of them
https://www.coindesk.com/markets/2023/06/01/makerdao-paves-way-for-additional-128b-us-treasury-purchase/
there is a licensed financial company behind it, so if those guys get in trouble the whole peg and the whole autonomous governance is down the drain.

[Hamza2424]

How can you have a coin count in both pro and cons based on the ones making the decision?
Is it centralized or decentralized in the end, is there an authority or not behind it?

But I'll answer this myself, since the so-called decentralized organization actually hold US bonds, 1.2Billion of them
https://www.coindesk.com/markets/2023/06/01/makerdao-paves-way-for-additional-128b-us-treasury-purchase/
there is a licensed financial company behind it, so if those guys get in trouble the whole peg and the whole autonomous governance is down the drain.

The reserves behind stable coins are always suspicious for the community especially when it comes to the most dominating one USDT, no doubt it provides ease of use and universal acceptability on every platform, especially on centralized exchanges. UST was a transparent solution and hope for the community, but LUNA spoiled it hard.



Have a look at the reserves of the USDT. it's really disappointing that there is no other solution except for direct P2P of crypto with local currency, DAI is still exists but it lacks the acceptability on maximum platforms.

[electronicash]

why are we made to believe DAI is decentralized when there is a team managing it such as MakerDAO?
USDT and USDC is not very different. except USDC is ranked lower but generally works the same way, if you are not going to mind all the troubles in moving them around to some unknown networks. but it makes it  safer  and easier to trade with stablecoins.

i only have USDT,  all are in binance. nothing seem to be wrong just keeping it there after all they are just too little to be taken by anyone.

[MrSpasybo]

USDT, USDC, and DAI have their own pages here on altcoin. So which stablecoin do you have?
$USDT (Tether)

Pros:
Market Dominance: High liquidity and acceptance across numerous exchanges and platforms.
Stability: Pegged to the US dollar, providing price stability.
Ease of Use: Facilitates quick and low-cost transactions between exchanges and wallets.

Cons:
Centralization: Issued and controlled by Tether Limited, raising concerns about transparency.
Regulatory Scrutiny: Faces regulatory scrutiny and legal challenges, creating uncertainty.
Audit Concerns: Ongoing concerns about the lack of comprehensive audits to verify reserve claims.

I always have USDT in my account to DCA crypto in the accumulation zone and recovery phase. Tether has become a major force in the crypto market, holding many US Treasuries bonds and trying to comply with regulations for many years to survive and grow stronger through each cycle. The collapse of Tether could cause major liquidity problems and recession in the crypto market, so I think the possibility of this happening is very low, maybe Tether is too big to fail. The US government also does not want Tether to collapse because Tether's USDT is becoming an effective tool to promote the power of the USD in the global crypto market, while attracting capital to buy government bonds.

I also hold a few other stablecoins like USDC and FDUSD but not significantly, I don't think they are really safer than USDT

[Stompix]

UST was a transparent solution and hope for the community, but LUNA spoiled it hard.

UST was a bad solution, it lacked any real backing and you saw the consequences!

[img geight=200]https://talkimg.com/images/2024/05/30/L5CuI.png[/img]
Have a look at the reserves of the USDT. it's really disappointing that there is no other solution except for direct P2P of crypto with local currency, DAI is still exists but it lacks the acceptability on maximum platforms.

And what is wrong with those? It's government bonds, the safest thing in the world and they are short-term bods, unlike any other crypto backing solution these government bonds are the only things that can actually be audited at their value,  you know they exist, you know the company has them, you know their value and you know they will always be pegged to the USD!

Any other solution that tries to mimic a stablecoin and is not based on that fiat currency value is vulnerable, that's how things work!

Of course, you could back your stable coin with Bitcoin, and what happens if the wallet gets hacked? 
Or what happens if there is a crash and Bitcoin drops like the last time 60%, how do you protect your stablecoin when the assets backing it are crashing?

[Charles-Tim]

why are we made to believe DAI is decentralized when there is a team managing it such as MakerDAO?
USDT and USDC is not very different. except USDC is ranked lower but generally works the same way, if you are not going to mind all the troubles in moving them around to some unknown networks. but it makes it  safer  and easier to trade with stablecoins.

People said DAI is decentralized because the wallet developers can not freeze anyone's DAI. Unlike how Tether Limited and Circle are freezing USDT and USDC from noncustodial wallet. It was said that DAI can not be frozen but I do not know how true it is.

What I do not like about DAI is that it is backed by other stable coins like USDC. That was why it was depegged when USDC depegged like 2 years ago.

[JISAN]

USDT, USDC, and DAI have their own pages here on altcoin. So which stablecoin do you have?

It is very safe to hold stable coins, because if you keep money here, the value of the money is stable relative to the dollar.  So there is no fear of loss. But if you remember the crash of UST, you are afraid to keep money in stable coins. But till now USDT, USDC are in very good position and investors and traders are depositing large amount of money in them. I myself use these two stable coins. I think these two are the most trusted stablecoins out of all other stablecoins. USDT is my first choice as stable coin

[Husires]

The only drawback of $DAI is the lack of diversification of the assets they use as collateral, especially USDC, which means that if the price of USDC collapses, it will be difficult for $DAI to maintain a value of $1. If they succeed in diversifying their assets, it will be the ideal stablecoin for those who want to stabilize their profits from cryptocurrencies for a short or medium time.

[kulkhan]

There are many stable coin available in cryptocurrency market. Usdt, busd, usdc Dai etc. But my favourite stable coin is usdt. It is very earlier to found even usdt transaction charge is very low so it being popular day by day. It's position in top ten on cryptocurrency market.

I like usdt and i also think usdt is very popular stable coin. I think usdt will more popular in future.

[Mr. Magkaisa]

       -    Here in our country, there is an agency of our government that seems to want to adopt usdt for our pensioners here, this is quite a good implementation that the agency will do in terms of adoption of crypto. It's not even clear to me if from the exchange it is possible to directly make a contribution for the future pension using usdt.

That's why for me this is a good step taken by the most official of the agency in this matter in my opinion and it's just an opinion. Even the Usdc is pretty okay with me.

[Husires]

       -    Here in our country, there is an agency of our government that seems to want to adopt usdt for our pensioners here, this is quite a good implementation that the agency will do in terms of adoption of crypto. It's not even clear to me if from the exchange it is possible to directly make a contribution for the future pension using usdt.

Why would a government agency want to do that? USDT is not the dollar, but rather tokens in exchange for promises to obtain the value of one dollar, but there is nothing to guarantee those promises.
It is better for these agencies to give the option to receive payments in Bitcoin, as it will be very beneficial for retirement and pension plans.

[NikeFit_7777]

Kaiko recorded an increase in the use of euro-linked stablecoins after MiCA, the law regulating cryptocurrencies in the European Union, came into force.

Today, the share of stablecoins on the European market compliant with MiCA is only 12%. Due to the lack of alternatives on the market, Circle and Societe Generale-Forge issuers are maximizing their benefits.

P.S. By the way, yesterday Circle integrated EURC into Base's L2 network.

[Cech1337]

USDT, USDC, and DAI have their own pages here on altcoin. So which stablecoin do you have?

Here are some pros and cons - are there more?

$DAI

Pros:
- Decentralization: Managed by MakerDAO, ensuring no central authority controls the coin.
- Collateral Backing: Backed by a variety of cryptocurrencies, enhancing stability and reliability.
- Dai Savings Rate (DSR): Users can earn interest by locking their DAI in the DSR contract.

Cons:
Complexity: Mechanisms involving collateralized debt positions (CDPs) and smart contracts can be complex for new users.
Volatility Risk of Collateral: Backed by volatile cryptocurrencies, which can affect DAI’s stability during extreme market fluctuations.
Governance Risk: Relies on the decisions of MKR token holders, which can impact stability and usability.

$USDT (Tether)

Pros:
Market Dominance: High liquidity and acceptance across numerous exchanges and platforms.
Stability: Pegged to the US dollar, providing price stability.
Ease of Use: Facilitates quick and low-cost transactions between exchanges and wallets.

Cons:
Centralization: Issued and controlled by Tether Limited, raising concerns about transparency.
Regulatory Scrutiny: Faces regulatory scrutiny and legal challenges, creating uncertainty.
Audit Concerns: Ongoing concerns about the lack of comprehensive audits to verify reserve claims.

$USDC

Pros:
Transparency: Issued by regulated financial institutions with regular attestations of reserves.
Stability: Fully backed by the US dollar and audited monthly.
Regulatory Compliance: Operates under strict regulatory standards, enhancing trust among users.

Cons:
Centralization: Issued by a consortium (Centre) and controlled by regulated entities, leading to centralization concerns.
Regulatory Risk: Subject to regulatory changes that could impact its operations.
Limited Use Cases: Primarily used for trading and transfers, with fewer DeFi applications compared to DAI.

Great comparison of the three major stablecoins! Here's a bit more on each, along with some additional considerations:

$DAI
Pros:

Decentralization: Operated by MakerDAO, which means it’s not controlled by any single entity.
Collateral Backing: Secured by a range of cryptocurrencies, which can offer more robustness.
Dai Savings Rate (DSR): Allows users to earn interest on their holdings, providing an added incentive.
Cons:

Complexity: The underlying mechanisms, including CDPs and smart contracts, can be complicated for newcomers.
Collateral Volatility: The value of DAI can be influenced by the volatility of the collateral backing it.
Governance Risks: Changes and decisions made by MKR holders can affect DAI's stability.
Additional Considerations:

Adaptability: DAI’s decentralized nature allows it to adapt to various crypto trends and innovations.
$USDT (Tether)
Pros:

Market Dominance: Widely used across exchanges, making it a go-to choice for many traders.
Stability: Maintains a 1:1 peg with the US dollar, offering reliable stability.
Ease of Use: Facilitates quick transactions with minimal fees.
Cons:

Centralization: Controlled by Tether Limited, which may raise concerns about centralized control.
Regulatory Scrutiny: Faces ongoing regulatory challenges, which could affect its stability and operations.
Audit Concerns: There are ongoing debates about the transparency and completeness of its reserve audits.
Additional Considerations:

Liquidity: Its high liquidity makes it a preferred choice for many market participants.
$USDC
Pros:

Transparency: Regularly audited by regulated entities, ensuring transparency and trust.
Stability: Pegged to the US dollar with full backing and monthly audits.
Regulatory Compliance: Complies with regulatory standards, providing additional security.
Cons:

Centralization: Issued by a consortium and controlled by regulated financial institutions, which could raise centralization concerns.
Regulatory Risk: Changes in regulations could impact its functionality and acceptance.
Limited DeFi Use: Less integration into DeFi compared to DAI, which could limit its utility for some users.
Additional Considerations:

Trustworthiness: Its backing by regulated institutions may offer greater peace of mind for some users.
Overall Considerations:
User Needs: Your choice might depend on what you value more: decentralization and DeFi features (DAI), market dominance and liquidity (USDT), or transparency and regulatory compliance (USDC).
Diversification: Some users choose to hold multiple stablecoins to balance their advantages and mitigate risks.
What about you? Which stablecoin do you prefer and why?